Senate advances reconciliation package
The Senate voted 50-49 on Thursday to advance the Republican reconciliation bill, rejecting a Democratic effort by Minority Leader Chuck Schumer to send the measure back to the Judiciary Committee. Schumer wanted to remove language that would preserve President Donald Trump's $1.8 billion anti-weaponization payout fund at the Department of Justice.
The vote split strictly along party lines. Republicans argued the fund is necessary to protect against politically motivated prosecutions. Democrats said the fund is a slush fund that could be used to reward Trump allies.
Bill expands tax cuts and adds to deficit
The reconciliation bill expands the House's tax breaks and introduces new provisions that budget watchdogs say add more than a trillion dollars to the national debt. The Committee for a Responsible Federal Budget said the Senate took a bill that already borrowed too much and made it worse.
The legislation waters down offsets that were meant to pay for the tax cuts. It also introduces new special interest provisions that critics say benefit wealthy donors and large corporations at the expense of fiscal discipline.
Political stakes ahead of midterms
The reconciliation bill is a key legislative priority for Republicans as the 2026 midterm elections approach. Party leaders want to deliver on tax cuts and spending priorities to energize their base. Democrats are using the debate to attack Republicans on fiscal responsibility.
The strong jobs report showing 172,000 new positions in May gives Republicans a talking point on the economy. But inflation concerns remain, and 61 percent of Americans surveyed said they had to cut back on groceries, according to a New York Times poll.